tv Fast Money CNBC March 22, 2013 5:00pm-5:30pm EDT
and finally today, my observation on what could be a game changer for jobs created in this country. and that is fracking and the rich amount of shale gas in the united states. this is the kind of situation where government and business can come together to ensure that the job is done safely and does not impact the environment in a harmful way. it is imperative we effectively use the resources this country happens to be rich in. but of course, if only it were that easy. in a matter of months, the obama administration will have to decide whether to permit the keystone pipeline. a 2,000-mile conduit from the canadian oil sands, seeking ports on the gulf of mexico. environmentalists have made stopping the pipeline their number one priority. but about two weeks ago, the white house released the results of the state department's impact statement on keystone which said the impact would be nil. and yet, still no movement on
the passage of this pipeline, which is estimated to have the potential to create millions of new jobs. meanwhile, there's a fight over shale gas. something this country has in abundance. so much so, america could become energy independent. the fact is, we need to move forward on multiple tracks, not just one track. why not employ all of the above strategy? keep pushing for cleaner, renewable energy but tap the resources we have in america? it's a smart way to go and if you want this economy to realize anything close to its full potential, it's the only way to go. that will do it for us tonight. thank you for joining me. have a great weekend. "fast money" begins right now. live from the nasdaq market site in new york city's times square, i'm melissa lee. here's what "fast" is following on this friday night. deal or no deal. should investors care? why the cyprus crisis isn't a deal breaker for the rally. winners and losers. a look at the biggest pops and drops, plus how you can trade one of the week's biggest buzz
kills. and coal whiners. are there finally some diamonds in the rough that you should be buying? but first, we want to turn to michelle carew sew cabrera for breaking news on the ground in cyprus. michelle? >> they are voting, finally, in the cyprus parliament tonight on some key legislation that would allow them to wind down the banks and hopefully meet the environments of the european central bank and the deadline set by monday. so, that way, the official system within this country can stay functioning through next week. you're looking at live pictures of the parliament in cyprus right now. they have passed two laws thus far. one a solidarity fund they hope will raise money. a second one on capital controls, so when the banks reopen next week, hopefully, there will be limits in place on the amount of the money that can be withdrawn. they do anticipate bank runs. we are still waiting for them to vote, though, on the most controversy aspects. two laws that give the central
bank authority to take action and restructure the two largest banks in this country. we'll keep you up to date, see if it finally happens. that would mean there would be some kind of procedures happening over the weekend, so that way these banks can be recapitalized or stronger by tuesday morning. guys, back to you. >> michelle, thank you for that. on the ground in cyprus. b.k., give me the bottom line here. sitting here on a friday night, "fast" is back on friday night. i want to know, does this matter for trade on monday? >> it does. the thing about the euro zone, they don't have a central government. the woonly way they can get anything done is govern by brinksmanship. the market is conditioned to think that europe is going to be fine and get through this. every time you bring it to the brink, you have that risk it could break. what they passed tonight, so far, doesn't really matter. these have already been rejected by the eu, so, we're going to have to wait. >> and it continues to be a buyable event in the s&p. everything that matters is only
bernanke, if that makes any type of sense. we've sold off a lot of european news. but the truth is, as soon as bernanke keeps his foot on the pedal, this market continues to move higher. fund flows come back in equities. >> let's get to the traders and their trades for next week and tim, given this news in cyprus what are you watching? >> we were edging up, we were selling the wig in poland, so, hedging up quite a bit. we are seeing flows out of that region, people that are scared. we're heavy em players. we put a lot of put activity out there. that's the right thing to do. we want to be long. >> all right, grasso, what levels are you watching? >> in the s&p, we touched 1543. you want to look at 1576. that's the number you want to key in on. >> your trade? >> i sold some micron. i sold half my position. >> did you take advice from regis philbin? >> yes, i did! i'm not sure that he sold any
but it's acrazy thing, you have to do it. >> wow. is regis inside of your body? >> something came out of me. >> that was an exorcism. amazing. >> all right, guy. >> hi there. >> right next to you again. like old times. amgen. why do you ask? as steve points out, 70% of stocks are linked to the s&p. i'm not nearly as enthusiastic about a potential for a rally next week. so, i want to be into something that's not -- does not have the same link to the s&p. amgen is. new all-time high today. >> booikers? >> well, what b.k. thinks is that next week we might get that last rally. one thing the news this week told you is that domestic u.s. is the play to buy. buy iwm, domestic companies in the u.s. >> let's move on here. russia rebuffing cyprus's request for aid.
will this derail the rally and will cyprus leave the eu? for more, let's bring in the president and chief investment officer of merck investments. great to speak with you. >> great to be with you. >> we saw a fairly big move in the euro today. i'm wondering what you think is going to unfold next week. >> well, you guys pointed out, bernanke's all that matters. there is somebody on the other side of that trade, the european central bank. the europeans have been mopping up liquidity. the americans, the brits, the japanese, all printing money like crazy. i disagree with the notion that they will always fix it and that's why the market is up. is market is up even if cyprus were to melt down. what people have realized is that cyprus is not contagious. we have treasury auctions in spain last week that went great. if people were pricing in the remote chance of contagion, we wore very different where we are today. clearly, this weekend can do many things. going to be many rocks in this road. but in europe, they're not printing this money.
that's why these problems and, you don't want to have the euro in a separate bank account, but if you have the euro in a german t-bill, you're going to be much better off. and there's value. >> you actually want to buy euros on dips? >> yes, i definitely want to. of course, you can buy equities and hope that bernanke is going to be healthy forever. the challenge is, it's expensive. the challenge is, you are chasing something that's pushed up artificially. the euro is depressed for good run. >> axel, i agree with you that qe and liquidity everywhere has brought peace to the financial world but anybody leaves the euro -- you can't leave the euro. you seem to be gleossing over a reality -- >> it is not rational, it's not healthy, but i think the events of last week have shone there are many irrational things happening in cyprus. so, it's possible they have a meltdown. it's unlikely after the votes that are coming in right now. the point here, though, is,
cypriot banks have little debt, which means the contagion is very limited. in greece, people did not start a bank run. the bank run is not happening. i'm not saying it can't happen. i'm just saying that the market shows us that the contagion is not there. and with that, we, the germans have decided, rather to put the foot down, not to give in, that strategy is winning. and sure, who knows if the euro is going to be around in ten years. but i don't really care about that. i want to hold jer unanimous debt. i don't want to hold cypriot debt. >> axel, great to e so ysee you. b.k., you are long, but a different reason. >> a similar ran in that i'm looking at the euro as it becoming the deutsche mark once again. you have southern europe pulling away, you have a stronger, harder currency. don't look at spanish and italian t-bill rates or yields, because they'rer relevant at this point, because the ecb is in there and also the cyprus news, they went after the bank
holders, they didn't go after the bold holders. it's different. more dangerous, because you don't have those risk factors. >> okay, let's move on, hit pops and drops, the biggest movers of the week. a drop for oracle, down 12%. guy? >> that was as bad a quarter as i've seen in quite some time. we talked about it the other night. down today on a good tape. didn't get any bounce off yet. jim thought it should trade down to $29. >> fedex, a drop down 9% for the week. tim? >> well, shippers effectively were some what irrational earlier on the bax of the fedex news. i don't think this is terrible. fred smith said they got a little over their skis, adding too much air capacity in asia. the shipping business is still very strong. there's some deflation their elements of it. they are moving to ground shipping. that's not necessarily good for margins. shipping is fine. >> first solar, a pop, the move 8%. beekers? >> a competitor went out of business. that's reducing capacity in the industry. china may support the solar
industry once again. >> a pop for nike. grasso? >> everything around china is doing better and china is actually doing better itself. if that continues, this thing is off to the races still. still more room to the upside. >> all right, well, those were the best stocks and the worst stocks of the week. let's take a look back at some of the best moments of the week on "fast money." >> now, guy, when i heard about this story, i thought about what happened with you when you also hit an animal. >> i was with my son, he was 9, 10 years old at the time. whacked it on the way to school. crying in the front seat. i'm like, toughen up little man! if you are buying food at ikea, i don't need the hate mail, you only got yourselves to blame. >> mad cow, yes, mad horse, no. horse might be safer. >> so happy that you remembered my micron. >> how could we forget your call, regis? tim won. >> that's what i'm talking about! >> going to disney world. >> yeah.
that was your second victory, tim tim. good for you. >> good thing you had yoga pants. >> did you put them on and bend over? >> whoa! hey! >> how about that? >> coming up next, we trade one of the week's biggest buzz kills and firing up the coal trade, we tackle where the coal stocks can regain traction. >> tim, is that a thong? you running fast? and firing up the coal trade, we if you think running a restaurant is hard, try running four.
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it weigh options. smithfield foods popping about 3%. melissa? over to you? >> thank you, josh lipton. beekers, what do you say? >> b.k. loves a pop in the meat space. now that you got goldman sachs in there, i think you're all right. you have a floor under the stock. you can probably buy it here. >> all right. time for the buzz kill of the week, and that is the financials. one of the worst performing sectors with names like morgan stanley, goldman sachs and citi all losing ground. do you use this as an opportunity to get in, grasso? >> i think we had an analyst on that said, the biggest exposure you can get is morgan stanley. the least you can get is goldman. it was counter intuitive but you want to play it on that. you want to buy goldman on the dip. >> tim? >> valuation wise, i still like bank of america and one of the big calls this week, a lot of people have said, you don't need major growth. you just need normalization, the balance sheet to continue on. so, there seems to be a lot of
momentum in addition to valuation supporting this sector. this, to me, is how you play growth in america and global deflation, which is what i think we have. >> blackstone got whacked this week. just people taking profits on the back of what's been a tremendous run in the name. bla blackstone here, i think, you be long that name. >> next trade here, coal prices have been under pressure from oversupply and the record production of nat gas. have we seen the bottom in coal now that nat gas prices are rebounding? let's get the latest from francisco blanche. you said the worst is not yet over for coal? >> look, we think for global coal, we still see pressure on prices. there's supply coming from indonesia, australia, you have colombian coal coming through the pipeline. as you look at the u.s. market, maybe there's more support given the higher gas prices. >> can you separate it out for thermal versus -- is thermal poised to move higher? because we see so much pressure
and it's all about china -- >> right. it's basically used in steel production processes. completely for market to thermal. that's purely power generation. the market that we think is particularly weak is thermal. it's more for industrial, sort of china related as you pointed out. there, we see kind of mixed signals, but there's more support there, i think. >> francisco, when you look at goldman, the other guys this week were very aggressive in downgrading the bulk. i know we are separating iron ore, strutrucal things going on in each part of the industry, but when you put an $80 tag on, you know, on iron ore out in 2015, this tells me we're going back to levels where we were in the crisis. people that own things like cleveland cliffs and walter energy are saying, this is a stock that can go down to the lows of, say, march 2009? >> well, look. i think if you analyze what's happening in the mining sector,
there's clearly a lot of oversupply, because the chinese economy is no longer growing at 12%. this global economic cycle is led by the u.s. it's not a very strong cycle, either. not a cycle that we're going to need a lot of mine commodities. now energy come moldties look a lot better and that's true particularly for oil and gas. there's more support there. >> francisco, thank you so much. >> thank you. >> you've been playing in the iron ore space and coal, so, where do you go here? >> if i was forced to go in the coal base -- >> why force? you wouldn't want to at all? >> i think you can't touch them. obviously they're all trading around their lows. the powder river basin names, they have a lower threshold as far as nat gas prices. >> all right, so, as you know, we kicked off "fast money" madness this week. 64 stocks, four sectors and over the next two weeks, we will get to the single best stock in the land. but if your real bracket is busted, play along with us via
twitter. this week, we saw ebay sail into the third round, taking out home depot and pfizer. all the number one seeds held on with google amazon, bank of america and united technologies. but remember, you are the fifth trader in deciding. so, tweet your picks on twitter using #fastmoneymadness. go to cnbc.com to see the bracket. a lot going on here. >> love it. >> what's your favorite? >> first of all, congratulations to you. >> harvard! yay! crimson! >> please. please don't pretend. don't feign excitement. you didn't watch the game. a lot of people, under the radar. nobody talked about that united technology, my favorite. >> beekers? >> i go with united technology, sure, why not. i didn't expect you to come to me, so -- >> yeah, i can see that all over your face. all over your face. >> google! google! >> sorry, go ahead. >> google! >> coming up next on "fast money," a fire sale. should you take a chance on it? and your first move monday
buy this dip? let's go off the charts with time seal mour f tim seymour on this. >> down 30%, relative to the s&p since april 2011. if you look at the story this year, again, this is the fire sale we're talking about, even on a year over year basis, we're at new lows relative to the s&p. i think emerging is overdone. it's trading this way because there's a directionless view about china. the growth is not there, but people are not able to own commodities and they're getting it from multinationals but i do like russia here and i do think you have to make a call here that cyprus is very bad news, i think, systemically for the world to be wary of. for russia, the exposing their banking sector is very small. the rsx etf this is something that's oversold, bounced off the 200 and we're going to start to see momentum back into russia next week. here, again, i think we hold the
200. the wachs i would play russia, i think, not necessarily tethered to the old fashioned energy space, but trade mbt or vip, which is actually selling off assets in italy and parts of ofry ka and regaining a decent balance sheet here. interesting places to play. >> all right, let's get to the final trade at this point, beekers, what do you say? >> i like monsanto here. starting to become the planting season. >> okay. >> who -- >> we're going to peel this back. i was too excited to get to the final trade. we're going to -- >> it was a good final trade. >> we're going to do tweets at this point. >> i'm ready. >> so -- guy, you know what your tweet is here? >> well, throw it at me, mel. i'm not a mind reader, but -- >> how are you so damn handsome? >> the tweet is about pepsi. i know what it's about. love to have the show back on friday, it's great news. is pepsi still a buy here?
and be careful. be very careful. pepsi is right around the double top. big move today on that nelson pelt stuff. i like at today is an opportunity to get out of it. take profits. >> all right, breaking news, we want to go to kate kelly. kate? >> thank you, melissa. we understand that the u.s. department of justice is in the advanced stages of a probe into the so-called london whale traders formally working with jpmorgan. these are the folks who were involved with the london whale debacle that lead to $6 billion in losses for jpmorgan in its chief investment office. in an attempt to sort of hedge exposure that they had as a bank through a series of complex credit trades that went terribly awry. the d.o.j. is looking at questions if they mismarked intentionally and ultimately hid losses. all of which could be the basis for a securities fraud claim of the criminal nature. and they've been investigating for some time. jpmorgan acknowledged that the
d.o.j., among other investigators were looking for documents and other information in association of the credit losses that occurred last year. we knew that much. this takes it to another level to note there are individuals who are being targeted here in london, former jpmorgan traders involved in the losses, and that the d.o.j. has progressed quite a bit in terms of their inquiry into this. we called the d.o.j. for xh comment, they had none. melissa? >> friday afternoon, this doesn't sound like it's that encouraging. it's not particularly -- it's not the news you want to hear on a friday afternoon if you are jpmorgan. >> our thanks, of course, to kate kelly. interesting given the financials conversation we were just having. let's get to the final trade at this point. tim, what do you say? >> i think europe's very -- excuse me, emerging is oversold. i look to the asian part of emerging, which has done very well. thd, after 7%.
buy this dip, the etf. >> stephen p. grasso, what do you say? >> bank of america on dips. buy the weakness. >> brian kelly? >> well, you know, i already said monsanto. still like it 30 seconds later. >> glad you still like it. and guiy? >> we've had a tremendous stage director, his name is john, today is his last day, we've known about it for a couple weeks, the absolute best in the business. we here at "fast money" are going to miss him. >> i thought his name was bill. >> see that? >> we love you, john. and we will miss you. but the best of luck in your next big opportunity. of course, thank you so much for watching on this friday night. you can catch more "fast money" on monday at 5:00. meantime, "options action" is coming up next. the patient, presented with
a hairline fracture to the mandible and contusions to the metacarpus. what do you see? um, i see a duck. be more specific. i see the aflac duck. i see the aflac duck out of work and not making any money. i see him moving in with his parents and selling bootleg dvds out of the back of a van. dude, that's your life.